Some applications call `OpenDF()` without checking its availability, but fall back to `FSOpen()` or equivalent if `OpenDF()` returns `paramErr`, which is what the parent is witnessing. See `68k/modules/ams-fs/Files.cc` in the `metamage_1` repo.
If the error message is confusing people, maybe it's time to implement `OpenDF()` for real.
You clipped the part that said "Starting VNC server on 127.0.0.1:5900". Did you try connecting a VNC client?